Want to Make Over $1,000 of Passive Income in 2026? Invest $12,500 in These 5 Ultra-High-Yielding Dividend Stocks.

Investing successful dividend-paying stocks is an easy mode to make some passive income. Many companies presently connection the imaginable to cod a lucrative watercourse of dividend income owed to their precocious yields. Investing $12,500 crossed the pursuing 5 high-yielding stocks could alteration you to marque implicit $1,000 successful passive dividend income adjacent year:

Data source: Google Finance and the author's calculations.

Here's a person look astatine these big-time income stocks.

Ares Capital is simply a business improvement company (BDC). It provides superior to backstage mediate marketplace companies (those with $100 cardinal to $1 cardinal successful yearly revenue). It chiefly makes elder secured loans (71% of its portfolio) to companies successful little cyclical industries. It has invested $28.7 cardinal crossed 587 portfolio companies. Ares has an exceptional concern way grounds with a cumulative nett realized nonaccomplishment of little than 0% since its inception.

The company's concern portfolio generates involvement and dividend income. As a BDC, Ares Capital indispensable administer 90% of its income to investors via dividend payments. The institution has delivered 16 years of a unchangeable to expanding quarterly dividend. Ares Capital's defensively positioned portfolio and beardown fiscal illustration should alteration it to proceed sustaining and increasing its dividend successful 2026 and beyond.

Energy Transfer is simply a master constricted partnership (MLP), an entity that sends investors a Schedule K-1 Federal taxation form for each year. The institution operates a diversified vigor midstream level comprising pipelines, processing plants, export terminals, and different infrastructure. Stable fee-based sources (long-term contracts and regulated complaint structures) proviso astir 90% of its yearly earnings.

The MLP distributes astir fractional its unchangeable currency travel to investors, portion retaining the remainder to money enlargement projects. It's besides successful the strongest fiscal presumption successful its history. That gives Energy Transfer plentifulness of flexibility to money the multi-billion-dollar backlog of enlargement projects it presently has underway, which should participate commercialized work done the extremity of the decade. These projects assistance enactment the MLP's anticipation of expanding its organisation by 3% to 5% annually.